FREMONT, Calif., April 03, 2017 (GLOBE NEWSWIRE) -- Digital Power Corporation (NYSE MKT:DPW) announced today that it is targeting an 80-120% increase in revenue from 2016 in 2017. Top-line revenue will be driven by three key components:
- Organic growth;
- New customers; and
- An aggressive acquisition strategy.
The Company plans to leverage its targeted acquisitions by consolidating and streamlining new operations with our existing operations to provide both a greater production capacity and manufacturing productivity. These efforts will build upon the benefits derived from the reinvestment program recently instituted for current operations.
The Company stated this latest update is motivated by questions and inquiries from investors and others regarding the various 8K reports and press releases issued during the last two quarters. The Company reserves its right not to issue further investor guidance for 2017.
With the changes in corporate leadership and control since September 2016, the Company has embarked on a path to resolve its equity requirements from the NYSE MKT by raising new capital from both existing and new investors. These same equity efforts will fuel the 2017 acquisition growth strategy that will continue into 2018. The Company’s acquisition growth strategy encompasses several elements including investing for the long-term that enables the Company to leverage acquisition targets and other opportunities as they arise over time and will provide dramatic growth in gross revenue on a consolidated basis.
Amos Kohn, President and CEO of Digital Power, comments: “The same strategy is focused on the acquisition of leading suppliers of advanced products to the defense and aerospace industries as well as those in the sectors of medical, industrial and telecom. The strategy seeks undervalued businesses that can provide synergies in expanding customer base, additional customer ordering and in production.”
On March 14, 2017, the Company announced the award of a 3-year, $50 million purchase order by MTIX Ltd., headquartered in Huddersfield, West Yorkshire, U.K., to manufacture, install and service textile treatment systems that utilize proprietary MTIX Multiplexed Laser Surface Enhancement (MLSE™) system. This milestone demonstrates the ability of the Company to expand its product and service catalog while leveraging its manufacturing capacity and expertise. The Company has embarked on its acquisition growth strategy to support new customers and product contracts such as MTIX.
The Company expects to file its 10K report for 2016 by the close of business on April 7, 2017.
About Digital Power Corporation
Headquartered in Fremont, Calif., Digital Power Corporation designs, manufactures and sells high-grade customized and off-the-shelf power system solutions. Our products are used in the most demanding telecom, industrial, medical and military applications where customers demand high density, high efficiency and ruggedized power solutions. Our wholly owned subsidiary, Digital Power Limited branded as Gresham Power Electronics, is based in Salisbury, UK.
Forward Looking Statements
The foregoing press release contains “forward looking statements” regarding future events or results within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking statements include, but are not limited to, the Company being able to identify, acquire, and integrate new businesses, that upon completion of these acquisitions, that the Company will be able to integrate their operations with the Company’s operations in order to achieve the cost savings or efficiencies anticipated, that such acquisitions will provide the synergies anticipated, MTIX and its customers being able to order all of the machines subject to the purchase order, being able to reproduce the MTIX process, benefits and enhancements on a production scale, and the Company’s ability to integrate a sophisticated plasma and energy system. The Company cautions readers that such “forward looking statements” are, in fact, predictions that are subject to risks and uncertainties and that actual events or results may differ materially from those anticipated events or results expressed or implied by such forward-looking statements. Further, MTIX and its prospective customers related to the purchase order may modify their purchase forecasts for these products that would increase or decrease the Company’s actual revenue versus current revenue forecast for these customers. The Company disclaims any current intention to update its “forward looking statements,” and the estimates and assumptions within them, at any time or for any reason. More information about potential risk factors that could affect the Company’s business and financial results are included in the Company’s most recent filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available on the Company’s website at www.digipwr.com.